Builder Warranties: What's Covered, What's Not

If your new construction home needs a repair, make sure you check your builder warranty first.

Why it matters: Builder warranties protect your investment, and knowing what's covered and what’s not can save you thousands in repairs.

Builder warranties work differently from other coverages you might be familiar with. They follow specific timelines and cover construction defects, but don’t include general wear and maintenance.

The Standard Coverage Framework

Builder warranties typically follow the "1-2-10" structure.

• 1 - "The first year is what we call 'Materials and Workmanship,' which includes key items such as flooring, cabinets, doors, and so on,” said Chris Watson, Customer Care Manager at Tri Pointe Homes.

• 2 - “'Delivery Systems' are covered for 2 years, this is your HVAC system, plumbing, and electrical components,” Watson said.

• 10 - “A standard warranty includes a 10-year structural warranty, which includes the foundation and framing," Watson said.

Different builders might offer slightly different coverage periods, but this timeframe structure is consistent throughout the industry.

The Construction Defect Standard

Builders work hard to deliver move-in ready homes, and warranties serve as their guarantee that any construction defects will be made right.

"The builder warranty covers items that may not have been installed properly or that are not performing as intended," Watson said.

Knowing this distinction helps set appropriate expectations.

• Construction issues, like a door that won't close, will qualify for coverage.

• Cosmetic preferences or normal aging don't qualify for warranty coverage.

What Gets Left Out

Builder warranties provide valuable coverage, but they don't work like homeowner's insurance. They cover construction defects, not weather damage or normal wear and tear.

"The item that people are most surprised by is when we explain that the roof is only covered for one year and not included in the 10-year structural warranty," Watson said. "We are covering our installation and materials of the roof, but not damage that may have resulted from things like hail or excessive wind," Watson said.

Timing Your Inspections

Don't wait until your warranty expires to discover issues in your home. Make sure you schedule professional inspections before major warranty periods end, especially as they approach the one-year or two-year marks.

A professional home inspector can spot issues that homeowners might miss, and catching one before a warranty expires can save you thousands in repairs.

Third-Party vs. Builder Coverage

Some builders provide warranties directly through their customer service departments. Others work with third-party warranty companies that handle claims independently.

Both approaches have advantages. Builder-managed warranties often provide faster communication and resolution. Third-party companies bring standardized processes and neutral oversight to disputes.

Getting Maximum Value

First-time buyers often underuse their warranty coverage because they're unsure what qualifies for repairs or are hesitant to contact their builder.

"Don't be afraid to ask questions," Watson said. "Your warranty professionals are not only equipped to help you if you need a repair, but they are also a wealth of knowledge when it comes to the best ways to prevent future issues."

Most builders maintain extensive online resources, including maintenance manuals and how-to videos. These resources help homeowners understand what qualifies as a legitimate warranty issue.

The Claims Process

If you have a warranty issue, your approach determines how smoothly things get resolved. Watson recommends three key strategies:

• Trust the process. "We take every warranty call seriously, and we are eager to resolve any issue that may arise as quickly and seamlessly as possible," Watson said.

• Document everything thoroughly. "Detailed information and pictures go a long way in helping us accurately assess, diagnose, and put together an action plan for resolution," Watson said.

• Communicate clearly. Both homeowners and warranty professionals need to stay in regular contact throughout the repair process.

Beyond the Warranty Period

Builder warranties eventually expire, but relationships with quality builders often continue. Many builders maintain service departments that work on older homes for reasonable fees.

Building good relationships during your warranty period pays dividends later. Contractors who know your home's history can provide more effective service when you need repairs outside warranty coverage.

The Bottom Line

Builder warranties provide valuable protection, but they're not comprehensive insurance policies. Understanding coverage limitations helps you budget for maintenance and avoid unpleasant surprises.